117k views
4 votes
Ownership of common stock in a corporation gives:

A. the right to own a portion of the company
B. the ability to collect dividends
C. trade the stock on the market
D. an interest classified as personal property

User Yaka
by
8.4k points

1 Answer

0 votes

Final answer:

Ownership of common stock in a corporation gives various rights including owning a portion of the company, potential dividends, trading on the stock market, and personal property interest.

Step-by-step explanation:

Ownership of common stock in a corporation typically provides several benefits to the holders:

  • The right to own a portion of the company: Shareholders are part-owners of a company, with each share representing a slice of ownership.
  • The ability to collect dividends: Shareholders may receive a share of the company's profits in the form of dividends if the company decides to distribute them.
  • Trade the stock on the market: Shareholders can buy and sell shares of stock on various exchanges, benefiting from capital gains if the value of the stock has increased.
  • An interest classified as personal property: Ownership in the form of stock is considered personal property which can be transferred or sold.

Therefore, ownership of common stock entails a combination of proprietary rights, potential income through dividends, liquidity through market trades, and the classification of stock as personal property.

User Marienke
by
8.6k points